You want to start a business that you believe can produce cash flows of $5,600, $48,200, and $125,000 at the end of each of the next three years, respectively. At the end of three years you think you can sell the business for $250,000. At a discount rate of 16 percent, what is this business worth today? Multiple Choice O O $258,803.02 $314,011.33 $280.894.67 $325,837.81 $297,077.17
You want to start a business that you believe can produce cash flows of $5,600, $48,200, and $125,000 at the end of each of the next three years, respectively. At the end of three years you think you can sell the business for $250,000. At a discount rate of 16 percent, what is this business worth today? Multiple Choice O O $258,803.02 $314,011.33 $280.894.67 $325,837.81 $297,077.17
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:You want to start a business that you believe can produce cash flows of $5,600, $48,200, and $125,000 at the end of each of the next three years, respectively. At the end of three years
you think you can sell the business for $250,000. At a discount rate of 16 percent, what is this business worth today?
Multiple Choice
O
$258.803.02
$314.011.33
$280.894.67
$325.837.81
$297,077.17
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